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Markets Now

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02:00:00

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480

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Us 25, New York 20, Sandy 19, Manhattan 13, Charlie Gasparino 10, New Jersey 8, Napolitano 7, Duncan Niederauer 6, Pennsylvania 5, Chicago 5, Charlie 5, Neil Cavuto 5, Superstorm Sandy 4, Melissa 4, Sec 4, U.s. 4, Nyse 4, Geico 4, Sandra Smith 4, Verizon 4,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    October 30, 2012
    1:00 - 3:00pm EDT  

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ashley: good afternoon. i am ashley webster. melissa: i am melissa frances. breaking news on the latest on superstorm sandy. charlie: people are dead across seven states, more than seven million without power. three public transportation and homes are flooded. we will talk to governor of pennsylvania tom corbett about the impact on his state and recovery efforts. ashley: stock market closed for a second day because of the storm. first-time weather has caused that to happen since 1880. the new york stock exchange and
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nasdaq announcing they will be open tomorrow for regular trading operations. more on that coming up. melissa: one week until election day how will the northeast impact boating? neil cavuto will join us later in the hour. breaking news. hurricane sandy. you want to tell us where we are going? let's go to robert gray who is standing by in new york with more on this. robert: thanks very much. fluid situation out here, but we grab colonel paul owen with the u.s. army corps of engineers. thanks for joining us on fox business. talked to was a little bit about the situation. you are surveying lower manhattan and had a look around more of the city before we grab you here. how is the situation after the storm last night? >> doing remarkably well dues to
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the city prepared this and the state preparedness. they have done a great job building the infrastructure in order to withstand that tremendous storm we had last night. a historical storm. robert: you have been around a lot of these storms. how does this compare with the larger stores? >> the biggest one i have seen. i am new to this area. i don't think anyone has seen water lapping into battery park like a was last night and i had a chance to observe that last night at 10:00. we were trying to figure out where the water was going and that is part of the function here to help the city and the state with technical expertise how to get the water out of the subway stations and conduits. we are ready to help the city and glad to be part of the team that is really strong at doing what needs to be done for this situation. robert: the largest in at least 50 years as they have been keeping records. we know the restaurants here
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beside us, creating some damage but you talk about the subways. have you had a chance to go below and have a look beneath the surface at a subway system where the power lines are below the city streets of manhattan? >> the city has primary responsibility for doing that but we did look down there and there is definitely water over the cracks in some of the areas in lower manhattan? >> any idea of a timetable given your expertise and your colleagues as well how long we could be looking until we see power restored more fully and the subway, you have been talking -- anything you can tell us? >> i don't want to make an estimate on that. we are still trying to craft how difficult the situation is. there are a lot of complicated things that could potentially make an estimate premature. robert: any step you are recommending or being implemented now? >> the corps of engineers has a
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team with expertise, happened in katrina for the city of new orleans and chicago in 1992. they are at this moment in the air coming here to fly and they will be here tonight to help city planners advise him how to start first and get rid of the why. robert: back to you in the city of. melissa: you see the panel -- the tunnel completely filled with water. ashley: that is critical to the transportation story here. no one can get in or out of manhattan with transportation shutdown and the roads a mess. very difficult, unable to give any timetable but essentially more damage. let's go to new jersey talking of damage and assessing what sandy did. two million customers without power. jeff flock was in point pleasant
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beach in the teeth of the storm yesterday and today surveying the damage. jeff: had quite a ride. take a look. plenty of water. this street was like a river last night. is covered with water as well as stand. follow me this way, you will see there is sand all over the city streets in point pleasant beach. the other problem even though they cleared ocean drive up here, natural gas leaks, water systems still running, electricity out, natural gas leaked, report of one in white sands oceanfront hotel across the street. that is what they are doing right here, trying to shut that off because the gas is still on for most of the folks. out here they just finished cleaning this off with a front-end loader but couldn't get through up there because you see the roadway is washed out and there are a number of washouts on the jersey shore.
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a lot of cleanup out here. it could have been worse. still have electric poles standing. the main service lines are standing. that is good news. a lot of lines to specific residentss have been knocked down and have to be restored as well as natural gas. point pleasant beach not so pleasant. ashley: amazing when you see the beach moved into the neighborhoods like that. melissa: will take a long time to clean this up. u.s. equity markets closed for the second day, first time since 1888 the stock exchange remained closed for two consecutive days due to the weather but the exchange will be open tomorrow. ted weisberg, president and founder has been a member of the new york stock exchange for the last 43 years and he is here with us now to weigh in. i believe he is on the phone. do you think the exchange is
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ready to open given that a lot of downtown is without power, a lot of trading floors people won't go back to because of the lack of power. the right thing to open the exchange tomorrow? >> i am not privy to all the engineering issues that are going on but the answer is yes. my tenure at the stock exchange perhaps there was hurricane gloria and closed for a day. we might have openly or closed early but the exchange trading floor of the exchange was always open. it is absolutely mission critical that they open and i support them in doing that. ashley: the new york stock exchange proposed originally for electronic trading on the banks and brokerages, we are not ready for that, worried about the stability of the market, the technology, giving too much power to computers and so on. it raises questions about the
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preparedness for disasters for the industry. what are your thoughts? >> talking to somebody doing it too long and i am too old but having said that, when there were no computers it worked pretty good. without too many failures. now over the last ten years we have more into the computer age where there is more computer trading and physical trading and we all know about the computer trading but the fact is markets should be open and they are ready to the open. it is more reassuring for everybody, this is the modus operandi. we will figure out a way to get there. i live in manhattan, we have people who work in sea port in the suburbs. they will beat their ended is business as usual. melissa: they didn't open the past two days. does that tell us something new?
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>> i don't know what the thought process was but wall street is in stanford, wall street is in jersey city and it is a matter of the safety of people and you don't want to defy the authorities, please come to work and shut everything down. you have to basically address that and not fight that but now that they handled the storm, there has been a lot of damage but life goes on. we will figure out and things will get back to normal quickly. ashley: talking back to normal assuming the markets are open tomorrow which we are told they will be. what volatility or what kind of they are you expecting? a lot of people squaring their positions. what are you expecting? >> we will get the usual downdraft, the casualty, the
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insurance stocks and airline stocks. those particular sectors have the immediate impact to disruption because of the storm but in the past few look at these disruptions they usually turned out to be buying opportunities, not selling opportunities. the bigger issue for the market is the election just a week away. this election is a big deal land there's a lot hinging on the results of this election which will have a big impact on the market one way or the other. the focus will be the election. about balk and a -- economic numbers that the election -- [talking over each other] melissa: there has been talk about postponing the election because of what is going on with the weather. that will be a detriment to the market from your perspective. >> the chance of that happening are slim to non. sound like wishful thinking on the part of somebody, not sure whether it would be a democrat or republican. elections are going to happen. i can't imagine.
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we are talking about a section of the country, the united states is a big country and a lot of people were not affected by this storm. i think it will be -- everything will happen as planned and hopefully the results will be what everybody wants. melissa: thanks very much. ashley: he has seen it all. 43 years. amazing. u.s. refinery pipeline companies halted all east coast fuel supplies ahead of hurricane sandy beginning to assess the storm's damage today. what is the impact on oil and gas prices so far? sandra smith why that the cme with the latest on that part of the story. sandra: what traders are trying to digest, looking back into the depths of this room traders are here trading today but these energy markets are electronic trading only with nymex trading floor in new york closed for the day and if you look at crude
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oil, they are moving in the opposite direction of each other and the opposite direction they were trading yesterday in lieu of the refinery closures for the storm. gasoline down 1/2%, crude oil prices getting a boost near $86 a barrel. we are still trying to digest the actual effect of this storm on the refinery's. we haven't gotten a lot of word from companies that have been affected but the energy department has released this beta saying gasoline stockpiles may sink to the lowest levels since 1990 as a result of sandy. inventories down 16% from a year ago. weekly inventory reports delayed till thursday so bottom line a lot of traders say when markets reopen a lot of the focus is going to look at the supply side of the equation when it comes to the energy markets and stocks like philip and newstar, companies that shed down refineries along the east coast. those are stocks that will be on everybody's radar for the stock exchange opening up tomorrow.
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ashley: those refineries right now assessing the damage done. hopefully not too much and will get back up and running. melissa: a lot of people are talking about demand destruction and it will take longer for the data to come in and see how late balances out and where energy prices are going forward. sandy causing damage and record power outages in pennsylvania. over a million people without power. pennsylvania governor tom corbett joins us with an update on his recovery efforts. we will be right back.
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hahahaha! hooohooo, hahaha! this is awesome!
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folks who save hundreds of dollars switching to geico sure are happy. i'd say happier than a slinky on an escalator. get happy. get geico. melons!!! oh yeah!! well that was uncalled for. folks who save hundreds of dollars switching to geico sure are ppy. how happy, ronny? happier than gallagher at a farmers' market. get happy. get geico. so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so ch more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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melissa: fled and deaths and destruction across the northeast. let's go to tom corbett who joins us with an update on the situation in his home state. thank you for joining us. can you give us an update how things are in your state? >> the eastern part of the station we're starting the recovery process, but the western part of this date, the storm still located there and working its way north and will go into new york so we are still watching some win, not nearly as bad as yesterday and the amount of rainfall particularly when it lands in new york because the susquehanna river through the harrisburg area, that is a water river basin that will bring down a lot of water so we will watch that closely. we think we are ok but you never know.
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ashley: you have a lot of shelters up and running including shelters that are providing help to residents of new jersey? >> that is right. new jersey make shelters available, two state system universities available, may not be needed to be used. chris christie would like to keep everybody in new jersey. we are just there in case he can't do that. melissa: you at 1.2 million people without power in your state. andrew cuomo was critical of the power companies here and their response time. what would you say about folks in your state? >> power companies have been very responsive. we learn from the last year, a bad snowstorm last halloween, companies learn from that, they need to communicate more so with their clients and customers that have been doing that using the social network twitter and
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robotcalls. they continue to do that and let people know when they may get connected again. we urge people to understand with 1.2 million people out of service it will take awhile to get everybody completed and hopefully they understand that. ashley: transit systems have been brought to a standstill in new york and elsewhere. what about your state? philadelphia in particular? >> philadelphia is closed for today. amtrak is not moving any thing. the airport is starting to open to some airlines and in pennsylvania septic is the biggest system out west in pittsburgh, the port authority of allegheny county still operating on normal schedule. sandra: you have had some deaths in your state including a and 8-year-old boy, a tree limb fell on him and our hearts go out to that family. what do you see as the economic impact on your state going
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forward? will there be a lot of rebuilding associated with it? what do you think? >> there will be rebuilding from the wind damage. so far the flood damage has been minimal compared to what we went through last year when hurricane irene and tropical storm lee came through in the billions. we have to get an assessment. we're getting out of the roadways now. the eastern part of the state. we don't have any aircraft up at this point. we will do that tomorrow. major roads seem to be fine, even secondary roads seem to be fine. the assessment to the end of the week. melissa: how financially prepared are you to make those repairs? will you call for federal aid? >> we receive federal aid in the preplanning process and we hope we are not going to be anywhere near the problems new jersey
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faced watching the television. preplanning with the money use, we will reimburse for that. ashley: for those people affected by this storm or in the wake of that what advice are you giving them? >> for those in central pennsylvania, the same advice, be careful going outside, stay off the roads, remind them to watch the creeks in low-lying areas because creeks come up quickly, and flooding affects them briefly. melissa: thank you for joining us. the new york stock exchange will be open for normal trading operations tomorrow. why not today? at least electronic trading. a lot of people wondering that. we will talk to charlie gasparino after the break. i'm a conservative investor.
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>> 25 past the hour. parts of new jersey in shambles after superstorm sandy tour across the state. the storm ruined homes, highways and transit and left the 2.4
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residents without power. a full damage assessment will not be depleted for another 48 hours due to continued delays. a different side of sandy after dumped nearly two feet of snow on parts of the region. 205,000 customers left without power in west virginia. look at this incredible video. sandy, 70 foot tanker, a ground for the northeastern shore, stepped away from a roadway. according to bystanders' the vessel was more nearly a mile down the waterway. that is your fox news minute. back to lori and melissa. melissa: incredible pictures. ashley: i wonder if he got a ticket from a legal parking. ashley: nice will be open after
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two days of closures after superstorms and the swirling on wall street, about preparedness of the most prominent exchange to deal with difficult conditions. charlie gasparino had breaking news on this story from the get go. charlie: someone rewrote my toss. normal opening. this should not have been taken out. normal opening after -- take this that but it is apropos, abnormal closure. what do we mean by normal opening? the portrait will be there tomorrow. normal opening. here is what makes this abnormal. a yarn will be spun out in the next couple days. nasdaq, correct edge, they are
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prepared to open monday. this was that the nyse, telling me they only didn't open because of concerns by the brokerage community about trading, particularly trading through this -- duncan neiderauer will be on the air later, told me yesterday he was prepared to open monday and the system was in place, this is the problem duncan is going to have. why didn't you open, we are here at work. lower manhattan got crushed. i sought east river in the backyard, that said, after 9/11, 11 years, the stock exchange, the most prominent stock market in the country as a backup plan. they operate out of chicago and the data center in new jersey, you would think the wall street
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firms who have dealt with this situation broadly particularly in 9/11, and wall street journal going to merrill lynch when there is merrill lynch in new jersey, when this stuff is happening, this storm was not a surprise. i -- [talking over each other] melissa: they support the decision to open trading tomorrow. charlie: we really -- mary schapiro -- [talking over each other] charlie: thank you for enlightening us. this is a joke. [talking over each other] >> compelled thousands of people to come to the trading desk. [talking over each other] charlie: why don't they have a backup plan? the security market should not be shutdown because of a storm. that is it.
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we don't know what the price of ibm is, the value of ibm and big american companies, apple suspended because of this storm. the question is we have tons of technology, trade stocks in milliseconds and put men on the moon and can send drones' anywhere. >> to keep people out manhattan. [talking over each other] charlie: the point is, why wasn't there a contingency plan to have the markets running and by the way. much of this market trades through the electronics network that is located in chicago. why didn't they have a contingency plan to keep the markets open. one of the funny things, i like her personally.
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she is a great person. i am not taking a cheap shot at her. ashley: a little sarcasm. charlie: when i look at her record, her legacy, the stain of it will be the market structure, this market still is not healthy. following the flash crash, we have 50 separate markets trading in different trading for the all-around, new york stock exchange and electronic market was not ready to operate on its own because of the storm even though it has offices all over the world. ashley: the sec putting pressure on the new york stock exchange to reverse its decision sunday night because of the bellyaching --
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[talking over each other] melissa: that is not on the regulators or the stock exchange but goldman and j. p. morgan -- [talking over each other] charlie: on the regulators. melissa: i think the banks didn't want -- [talking over each other] charlie: the regulators, wrote -- create a market. melissa: where jpmorgan and goldman sachs do their trading. charlie: they don't tell them that. a tell them everything. they tell them everything. tell them how to operate a market. there are rules how markets operate. if they are not telling them to have a backup plan now why do we need an sec? [talking over each other] ashley: we have to leave it right there. charlie gasparino. melissa: sandy causing a lot of destruction but the refinery is unharmed. that doesn't mean there is no impact on the wall or the ability to get fuel especially in the northeast. more on that after the break. [ male announcer ] this is joe woods' first day of work.
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ashley: as we come back, yes, this is sandy as it moved inland causing trouble now on the great lakes. you're looking outside of cleveland, ohio, lake erie. you can see the lake water looking like the ocean pounding into those stone walls. waves up to 30 feet are being predicted. also on lake huron and lake michigan. a real mess out there. a lot of boats taken into harbor to ride out the storm. sandy a monster storm, we've seen what it did in the northeast. melissa: wow, look at that. ashley: these are winds on the backside of sandy creating very, very dramatic scenes from the great lakes region today. there you go, sandly certainly not done or over yet. melissa: look at the spray of water. really incredible.
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sandy's destruction is undeniable. there is good news out there. initial reports on energy struck struck in the storm's path -- infrastructure in the storm's path. matt smith, summit energy services and i joins us now. what is your assessment of how much supply has been taken off the market as a result of the past couple days? >> well, yesterday there were these huge supplyside concerns with the largest refinery in philadelphia there on the north coast, the northeast being hit. however we've come in today and only refinery we're seeing outages at is the bayway in new jersey. that is 240,000 barrels a day that has been taken off the market and flooded and a power outage. so far that is the only real damage we've seen considering all the concerns yesterday and price run-up we've seem to have gotten off somewhat lucky. ashley: what about the
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prices here, matt, where do they go? gasoline, crude we talk about demand destruction as we recover from the storm, where do you see prices going on this? >> the demand destruction is, was somewhat, well, yesterday we were more concerned about supply. now we're concerned about demand t could be two million barrels. it could be up to five million barrels of gasoline demand taken off the market here. and considering we're using about 59 million barrels in a week, that is a considerable amount to be taken off. and so, that is going to ease the concerns, the tightness that were existing prior to the landfall with sandy. however the northeast is very tight for gasoline inventoris. melissa: right. >> for supply, production generally and we are going to see prices not drop off after this considerably. melissa: matt, i was talking to a gas station owner, lukoil in new jersey, who was saying already he was out of supply and he didn't see how he was going to get
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more. he talked to neighboring stations they were in the same situation. given everything that is going on in the area there are some shortages already. don't you think that will drive prices at the pump at least regionally? >> sure. there is always the knee-jerk reaction when these things happen where you see a price spike hit gas stations that said the demand was frontloaded. people went to the gas stations. they filled up their jerry cans. that he is what we call them in england. i don't know what you call them here. the containers and everything. so really the demand is frontloaded. there will not be a dearth of demand as people don't drive over the next few days. melissa: matt smith. thanks for joining us. good stuff. >> thank you. ashley: i knew what he meant. new york stock exchange will be open later this hour and later we'll talk to nyse ceo duncan niederauer about the decision and why he did not go with electronic trading the last two days? we'll bring up points charlie gasparino has been bringing up. plus election day just a week away now.
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we'll look at the impact sandy is having on the campaigns and fine and crucial days. neil cavuto will join us after the break. we'll be right back.
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>> hello, everyone, i'm chairman cast with your fox business brief. the new york stock exchange and nasdaq will reopen for regular trading tomorrow after hurricane sandy forced
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big board and market participants closed today and yesterday. nyse making it official when charlie gasparino reported early that the exchange was expecting a normal opening on wednesday. ubs plans to lay off 10,000 bankers. the 3-year overhaul should save the zurich based bank save more than $3 billion and return cash to shareholders. head of apple smartphone decision will leave the company. forstall will serve as advisor to tim cook after the heavily criticized apple maps. that is the latest from fox business, giving you the power to prosper.
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melissa: election day is days away but the focus is on hurricane sandy.
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what effect will the storm has on the elections? big cheese, neil cavuto, vice president, managing editor, god at fox business. >> foregot the next line. omnipotent ruler. melissa: of all he sees. >> i was visiting with charlie gasparino. he likes mary schapiro? >> what does he say about me. >> don't get me started on ahmadinejad. man oh, man. that is faint praise. you're right obviously with all the delays and everything power could be out conceivably right through the election. what do you do when 20 states are affected? obviously it is all or nothing. you extend it for one, you extend it for all. that will invite lawsuits if you don't. but it is a slippery slope. then each side will start measuring wait a minute, does that benefit other guy or benefit me? ashley: yeah. do you think, slim to none the chance of this happening know, neil? >> i don't see it happening. i guess you could make an
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argument that, in areas where it is very tough to get to the polls, transit is still out or a hazard. but then you file paper ballots and deal with that. we've had a history in this country of, snowstorms on election day and people somehow have to get out to the polls even with power out. the difference this time a lot more would be without power and that might be conceivably an argument extending it. it would be a very, very tough call who does it favor if it goes ahead as planned? >> i don't know. we were, actually talking about it, melissa owing to the fact we had very little to do in my particular side but what's interesting is, you could see an argument if the momentum favors mitt romney, then it is so tentative. can't read a lot into it, then that snapshot favors him. if you cut it off next tuesday and everything is going the way it is going, advantage romney. you could also argue that maybe, and we're not seeing
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it in polls yet, the way the president responded, commander in chief always gets a bum in the polls how he responds to crisis. this president like a lot of president pretty good in time of crises. he has gotten high prize from chris christie in new jersey. it might give him a bump and might freeze that in place and to his benefit. i don't know how to play it. i think it is very clear to see the nominal shift in the polls we have seen has been more toward mitt romney and in swing states of late, more toward mitt romney. for example, tomorrow morning when trading resumes, say everything hits the fan at the same time and there is a tumult and people will start questioning as charlie was questioning why we closed trading for a couple days? i'm in your camp, melissa, there is thing called safety, thousands of people. charlie is callous as we all know. melissa: i didn't want to say. you're the boss. you're welcome to say whatever you want about him. >> we owe it to capitalism to trade. we owe it to people to live!. having said that, i think
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that, you know, if it is bumpy, that is not going to be the wind at the president's back. ashley: no. >> so that is a long-winded way of saying i have no idea. melissa: right. ashley: let's be honest, are there any undecided at this stage, neil? i don't buy it. >> i agree with you. melissa: private people don't want to say who they will vote for. >> remember the one in hempstead, 82 people they got who were allegedly uncommitted, those were all the uncommitted people in the country and they lied, half of them lied. they were no more uncommitted. ashley: wanted to be on tv. >> let's go for the salad. i don't believe that. i will tell you this though. i think far more noteworthy in this campaign after the first debate, guys i think that the president had a big swing away from him. it wasn't, you can't explain what happened to mitt romney and support he enjoyed just winning over undecideds. as you said there aren't enough of them. it must have been been soft support for the incumbent drifting over to him.
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i suspect in 1980, that's what happened the weekend before much of jimmy carter's base was falling away we all know what happened then. ashley: right. >> now i think the same could happen here. it is president's base in question. it is the president's base of support who is either rabid or not then we'll see. but i think it is the president's base that he is worried about and not so much mitt romney's base the argument, his supporters will walk over brokennglass to vote. simply nothing, because they love him because they dislike the other guy. ashley: yeah. >> so that could be a dynamic. they are. melissa: they are yelling at us that we should go. they also work for them and squawk into the booth and get their names. >> yelling. melissa: neil cavuto, special tonight's special. tomorrow morning you're not going home. i know why you're the big cheese. >> now you're mocking me. you're mocking me. melissa: definitely not. i would never. ashley: there was level of mockery. >> there was indeed. melissa: no. of a base closure, how did i
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end up in trouble, the new york stock exchange will reopen tomorrow for regular trading. we'll get latest from nyse euronext chairman and ceo, duncan niederauer. we'll be right back. 0t[h7
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melissa: the new york stock exchange will be open tomorrow after its first two-day forced weather closure since the 1800s. what kind of undertake something reopening? duncan niederauer is nyse euronext chairman and ceo joins you by the phone. before we talk about the reopening put to rest why the reason markets were closed? i'm sure you heard it debating last hour and everybody debating for days. did it have to do about reliability of electronic
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trading? >> i think it had e was more after safety issue to be honest, melissa. we could operate electronically a contingency plan in place and others operate electronically on a regular basis anyway. i think the industry correctly pointed out to us whether the markets are physical markets or electronic markets they would have to mobilize their staff to put it in place and we all made the right decision not to do that. so i think that was a good call. ashley: did you get a call, was it the sec who listened the concerns of the banks and brokerages that ultimately spoke to you sunday afternoon and had you reverse your initial decision? >> sorry you will have to repeat that. i'm at home and our son who never practices piano decided this would be a good time. ashley: we'll listen to that. after the sec announced sunday around that you would open on a electronic scenario did sec listen the banks and brokerages and
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ultimately convince you to not open on monday? >> that is a bit out of, that is a bit out of chronological order. so what happened is, the banks and brokers gave us feedback after our announcement we were on a call with a number of sifma representatives. after that was decided the right thing to do was not open and ask the sec to agree what we decided and they caucused and that approval and agreement came in fairly short order after that. melissa: should we expect this exact same thing next time? >> let's hope the next time is many, many years from now, but, obviously the last time we had to do this for a day was in the '80s and for two days in the 1880's. we hope it happen anymore frequently than that. i think two things will
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happen. one, i do believe that we, the regulators and the banks and by we, i mean all the exchanges, i think we as an industry should talk more about these contingency plans, perhaps mandating testing of these plans between ourselves and market participants so that whatever the situation might be we're prepared to go into these contingency plans. i actually don't think that would have changed the outcome here because i think this ended up being much more about a safety issue than anything else. but i do think we should be prepared to do that. and, so i think those are the two things that will happen. i think one, the industry will talk more about mandating testing and two, i don't know if it would be that different because if it comes down to a safety issue i think human safety is always going to trump any other decision we would make to keep the market open. ashley: but, duncan, if you had gone ahead with opening electronically on monday do you think the system is properly in place it would have gone forward with no problems? >> you can never anticipate that.
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i always hesitate to make statements like that because we didn't operate the market that way. we operate on the technology we would have been using we operate every day markets for nyse listed stocks and nasdaq listed stocks and etfs. it wasn't like it was technology we in the industry were not familiar with. so i would have been pretty comfortable it would have worked. again what was impressed on us even if we're operating electronically the majority of firms in the metro new york area would have to staff up and send people's into harm's way and they didn't want to do that and we didn't want them to do on further review. >> duncan, thanks for joining us. get back to piano practice. >> thank you. we'll see you guys open tomorrow morning. we'll be in normal tomorrow. we have people there now and more coming in tomorrow so we should be in pretty good shape for tomorrow. melissa: thank you very much. >> bye. ashley: coming up, lots more on the costly destruction caused by sandy of the plus we got some economic data today, believe it or not. another sign that the housing market could be
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recovering. the case-shiller index showing a rise in home prices in most major cities but can the housing momentum continue? we'll he will have that and so much are coming up straight ahead
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ashley: good afternoon, everybody, i'm ashley webster. nicole: i'm nicole petallides. the new york stock exchange and the nasdaq will both be open for business tomorrow after being closed for two consecutive days. that is the first time due to weather since the year 1888. ashley: amazing. now with the exchanges open what will superstorm sandy's impact be on the insurers and can they handle the losss? we investigate. nicole: sandy leaving legal battles in her wake. who is responsible for all this property damage? is it you? is it your neighbor? judge napolitano, well he will drop the gavel. that is ahead. sandy has wreaked havoc on the east coast. we've had complete coverage
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and continue to do so. robert gray on the new york stock exchange where it will be open for business tomorrow. jeff flock in new jersey where two million plus are without power. sandra smith is in the pits of cme where trading has been active. let's begin with robert gray, downtown new york city. ashley: we lost robert. that storm surge that poured over battery park and continued its march upwards and charlie gasparino just saying earlier today he watches that east river come up into his area. nicole: sandra smith is at the chicago mercantile exchange where we see trading of commodities.
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what is the latest? >> i grabbed don brady about that. i'm so sorry. but don brady, rg o'brien, big question i heard from a lot of traders down here, why the heck aren't markets open? i'm cure just. you've been down here a long time. why aren't they open. >> we're a safety valve. there are repo desks and repo traders in the new york-new jersey area. if something silly or crazy were to happen there is an outlet, the futures markets electronically and through the options market and that is why the exchange is open. there is a safety outlet for global markets while trading is still open. >> this is the pits trading normal session and electronic session. john brady, as a trader what have you been doing all week
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stocks futures is closed, there has been limited trading. what have you guys been doing? >> we've been reading a lot of polls and newswires regarding next week's election. a couple things have the market's attention, not just the storm. friday we have employment number. that number could see sizable revisions to the crazy september nonfarm payroll number about in early october. likewise we're following polls. seems that the raise is pretty close. it may be tilting one way. we're trying to get a bead on and handicap the what market as trading will be. >> john brady, very interesting. about the market report on friday and election next tuesday. where are markets going to open tomorrow by the way? >> i think stocks open a little lower. nasdaq probably 10 lower. you will see a rush of trading at opening. it will be quiet. >> john brady, rg o'brien guys. there is the word from the trading floor. back to you guys. nicole: thank you, sandra smith. tomorrow's opening sure to
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be busy one with a lot of heavy volume i'm sure. ashley: i think you're right. nyse is back open tomorrow. let's go back to lower manhattan. we re-established contact with robert gray. robert, take it away. >> hey, guys, ashley? ashley: take it away, robert. >> we're offer of kompbing effects of the covering the effects of the hurricane. it will be a massive effort. we have video of cars on a loading dock just a few blocks away from here near the holland tunnel which remains flooded with water. you can see cars almost fully submerged. police officers from the local district were here talking about actual department of transportation van fully submerged in 25 feet of water in a separate location. clearly the cleanup will be massive. it will take a while.
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elements outside not helping themselves the fact that there is no power down here further stymieing efforts to clean up things. we have paul joining us. he is a restaurateur. he owns battery gardens restaurant we're standing in right now. several other properties throughout the greater new york metropolitan area. paul, thanks for joining us on fox business. listen, talk to us. we can look around here. you can see water marks on the curtains how high the soot and sludge it was bringing in off the bottom of the harbor came up as water made its way into this his tore ridge surge, almost -- historic surge, almost 12, 14 feet. tell us how much of an effort it will be to restore this place to hosting weddings and receptions again? >> i only got two feet of water which does do a lot of damage. but fortunately nobody was hurt and, everything can be repaired and cleaned up. i, con-ed gives me power we
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could be open in two days. >> two days? that is pretty aggressive. you have several other properties here. talk to us about the damage in the manhattan properties and some on long island as well? >> manhattan properties other properties were safe. long island along the shore, i believe looks very bad. i hope we didn't lose all of it but looks like we lost the whole building. >> what about insurance possibilities here if you're covered with insurance? >> i'm covered with insurance but, i will not wait for the claim. we have a lot of employees here that need to work and, we also are committed with events to our guests and we have to go on with it. >> hopefully the weather will cooperate a little better. thanks, paul. to you guys back in the studio. nicole: thanks to you and mr. makaj. you've done unbelievable job down there. there is no power. we've seen pictures of all the water. you endured a lot. we have technical
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difficulties at top. everybody understands. this has been a very trying time. ashley: talking, move our attention to new jersey. jeff flock was in point pleasant beach, new jersey, yesterday in the very heart of the storm. now he is looking at the damage left behind. jeff, how bad is it? >> well, i'll tell you i think we'll have plenty of technical difficulties in new jersey along the shore. this is the hotel we stayed in last night. as you can see, kind of the worst for wear. this is what happened to a lot of these structures. sand and, potentially the ocean washing through it. this is, they just cleared this. in the last hour or so they just cleared. jimmy, walk over top of it, can you make it over top of this? this is cleared out ocean avenue along point pleasant beach is cleared out, except they have got a major wash out up here. this happened a lot of places along the coast, the ocean coming in and washing out streets. even though they cleared it they can't get down this
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way. this is cut off because of that washout. just one of many problems they face here along the coast. leave you with one last shot up the road there. maybe leave you with that picture. the cleanup starts where it ends we don't know. ashley: there is lot to do. jeff flock, thank you. homes that weren't beachfront property now are beachfront property thanks to sandy. nicole: jeff flock, thank you. case-shiller out despite superstorm sandy delaying other data releasing. it's been good news and bad news situations. let's take a look. home price growth slowing in august but reached the highest level since september of 2010. john byrnes, ceo of john byrnes real estate consulting joins us now with more on what's driving that recovery. mr. byrnes, what are your first thoughts on the recovery? >> the home prices have been recovering all year loaning actually. case-shiller is what happened five months ago. it is very delayed. we think home prices are up 3.2% over the last year.
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investors are driving a lot of it at the bottom end of the market. we're now even seeing flippers again, god forbid. we're seeing that. we're seeing consumers particularly those maybe in college six or seven years ago get into homeownership. those that got their last mortgage, 15, 20 years ago, buy their retirement or empty-nester home. ashley: flippers driving the recovery right now. it is modest at best if you agree? what are major headwinds the housing inus industry facing? >> homebuilders need more price appreciation in the outlying areas for them to kick-start recovery again. i would say that would be number one. number two, two years after dodd-frank we still don't have any clarity on the mortgage rules. so the mortgage industry is still a huge problem. now they're getting recovery we're seeing construction costs go up and this hurricane will make it even worse. nicole: mr. burns, can you elaborate on the point
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refering to dodd-frank rules and those most affluent and those in particular what we may see ahead? >> sure. so there were go things in dodd-frank, a qm and qrm qualifying mortgage and qualifying residential mortgage. they haven't defined it. the banks don't know what the rules are. so they're lending very conservatively. at the affluent end of household we're seeing more cash purchases than ever. affluent households are skewed toward people self-employed. they have a difficult time documenting their income and or a people get compensation in terms of bonuses, and banks can't say you make x dollars per year every year. they're making it difficult on those folks and they're saying you know what? i have a plenty of cash. and i will cut you a check. nicole: what do you think about real estate as an investment next five or 10 years as we talked to about flippers? >> i was a raging bear for five years and i'm a raging bull now.
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particularly from a payment standpoint. you can't guaranty where prices will go, but good god the payment as percentage of your income is probably as low as you will see. ashley: we've seen the market awash with cheap money from the fed, john. as you mentioned, banks are still very leery to pass on the cheap money. they're essentially just hoarding it. when do with you i think we'll see credit conditions and those elgible to get a mortgage will actually be able to get a mortgage? >> well, actually it is easier to get a mortgage than most people think. just a few groups i mentioned that have a tough time documenting their income. i have a lot of homebuilder clients. if you've got a job, they can get you a mortgage. you might have to pay a 5% interest rate all-in through fha. even with that kind of a rate it is pretty good. and for the rest of the mortgage market it is just, the regulators need to tell the banks, here are the rules. and then the banks will take off and start underwriting. nicole: okay. john burns, ceo of john burns real estate consulting
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and what drove all this housing recovery. thanks so much. >> you bet. nicole: sandy's impact is being felt far and wide. equity markets remain closed today but they are finally reopening tomorrow. air travel clearly impacted worldwide. roads, mass transit, shut down. and massive damage across the east coast. up next, our own liz macdonald on the historic cost that all of this brings.
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nicole: well hurricane sandy now ranks among the costliest storms ever with its broad impact felt not just across whole industry sectors but of course entire states as well. our own liz macdonald is here with more. emac's bottom line. liz, what are the ranges of the damages and estimates that we're seeing now? >> you know the ranges now are between 35 billion to $50 billion. and we've got the estimates that are continue to pour in. here's an estimate from economist mike england. he is with action economics. take a listen. >> we often find the ultimate insured losses are considerably higher than initial estimates. i've seen other broader estimates that economic loss will be 35 to $45 billion in the northeast. there are big ports on the east coast. the shutdown of those ports will affect trade. so trade will be important. >> so that's what is key here, nicole and ashley. the region is 1/7 of u.s.
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gdp. that is according to moody's analytics. what we're talking about basically not just oil and gas refineries but we have about 284,000 coastal properties, residential properties, valued at $88 billion. a lot of those people go out and they shop and there is retail sales that could be lost in this upcoming holiday season as money gets diverted away from consumer spending toward rebuilding. but one bright silver lining we're seeing out of jpmorgan chase, guys. jpmorgan is expecting $36 billion in basically increased spending in housing and very battered construction sector. so that is the silver lining we can take a hold of right now. back to you guys. ashley: very good. emac, very quickly, could this number go even higher? because there's still just kind of getting, assessing what this storm has done and the storm is continuing. it is not out of the way yet so we could have more damage in the ensuing days.
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>> that's right, ashley. we saw that yesterday morning with economic impact loss estimates at five to 10 billion. that immediately ratcheted up to 10 to 20 billion. of course those estimates are steadily rising. we should see this shakeout by next week. we'll get a definite feel for what the final number will be. back to you guys as soon as we get it. nicole: liz macdonald giving us the dollars and cents. we can't leave out the most important thing, the lives lost, right? 26 lives lost in the states and nearly 70 in the caribbean. thanks, liz. for that insight. ashley: time to change gears. making money with charles payne. he has a stock that will drive profit in your portfolio. a little clue there. >> a little clue. ford reported today. they were chomping at the bit to put out the good news t was mixed report. mostly because your viewer but overall they beat the street big-time. they reported 40 cents. beat the street by 10 cents. beat on the top line, 32
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billion versus 31 1/2 billion. hear is the story. north america was a monster. oh my goodness, 2.3 billion net. 9.5 billion. highest profit margin and profits since at least 2000. absolutely remarkable. ashley: europe they lost 1 1/2 billion for the quarter but they are taking steps in europe. they shut down at least three plants. i know in belgium in particular should help going forward. europe has been a big lead weight around their neck. >> guy -- gigantic disaster. 19 of 20 markets are down as well as general motors. nicole: so many people love the ford vehicles, trucks small, can, what was hot? have a breakdown over there? >> i know what i left the note out in the office. nicole: off-the-cuff. >> looking at last month's numbers, since september, ford f-150 is monster. beat everyone by a mile.
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silverado was number two but 20,000 units less. escape done well and ford fusion. top 20, four vehicles, two suvs one truck. gigantic margins. keep in mind the average truck or car in country is 11 years. anyone can get a loan. people love ford. the stock has been done. it was looking pretty lackluster. i think it could break out to $10.75. at very minimum looking 12.50, 13.50. nicole: whoa, that is nice upside potential there. ashley: what about the storm, charles, will that impact production? >> they have about 800 dealers are in the past path of the storm. that is a major hiccup for them. you kind of hope they get over that quickly. one thing i did worry about coming into this week. market share for ford as of last month was 15.3% from 16.6. so they have been losing market share. general motors losing a lot
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more market share. some of that is readjustment. remember the japanese automakers got hit hard from the tsunami. we'll see how that plays out. don't want to see them lose anymore market share. this number is a phenominal number and i think you have more upsoid than downside with ford. nicole: wall street drat gist, put it out there for the clients. >> how to make money. nicole: we have money signs behind charles payne. >> didn't take bailout. people love the company and love their products. guess what? they're not hampered making volts and thinks like that. nicole: right. >> good for them. we want products with big margins. ashley: thank you, charles. nicole: all right, thanks. the new york stock exchange closed for two straight days. last time weather shut down the new york stock exchange for two days when your great grandparents were alive in 1888. so they will be open tomorrow morning. i will be there for sure. charlie gasparino joins us with more inside scoop on that one. that is coming up next.
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ashley: welcome back, everybody. guess what? the markets will be open tomorrow. that announcement made earlier today from the nyse. it has been closed two days in a row, yesterday and today, because of hurricane
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sandy that is now continuing to cause problems across the eastern part of the country. not a hurricane anymore but certainly a lot of questions being asked about the system, the financial system, the of course the new york stock exchange, the biggest exchange in this country, being shut down for two days. the questions were, well, why? what preparedness was in place? what contingency plans were in place and why did the nyse originally on sunday afternoon say, well we'll go ahead with our opening with the electronic trading. then there was a revolt. then they changed their mind? nicole: i'm bursting with excitement i have to say, i really am, for tomorrow morning to get back on the floor after two days of trading. that will be very key, right? we've been closed for two days. we'll have our special with neil cavuto tomorrow morning. don't miss that. we'll probably have duncan niederauer back on again. the traders i spoken to were on the original phone call and looking at regulators as well. but, we'll have charlie gasparino look into it.
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the idea here was to i guess they could have gone electronic but it was really safety issue, number one for the people that may have had to go into the offices, so few people may have had to go in. ashley: nicole, we would talk about the insurance angle of all of this story with regards to the storm but to your point charlie gasparino just joined us on set now. >> with my phone. ashley: with your phone burning in your hand. >> you know, duncan niederauer did address this issue whether they should be open, whether they had to be open. ashley: i spoke in the last hour. >> take a look what he said. we'll set up the hit. play the videotape here. >> one, i do believe that we, the regulators and the banks and by we, i mean all the exchanges, i think we as an industry should talk more about these contingency plans, perhaps mandating testing of these plans between ourselves and the market participants so that whatever the situation might be we're prepared to go into these contingency plans.
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>> key, they did not have a contingency plan. ashley: that's right. >> it was a good interview you guys did, you and melissa in previous hour. neared near basically conceded they did not have a contingency plan. we should point out we've been reporting today, bats, direct edge and nasdaq, maybe it is bluster, they were telling us they were ready to open on monday. it was the new york city that couldn't. i tell you this, i like duncan niederauer a lot. he is very good ceo but clearly we need to know why they did not, there was a safety issue here. i'm not saying let's open up a trading floor on the, on the in the hudson river off battery park. ashley: right. >> i'm telling you when you, 10 days ago, joe bastardi who has been on the air all day predicted this would be really bad and others came after that. they knew this thing was coming at them, a missile coming at them. i left dallas. i went to see the cowboys and giants. for me to leave dallas, i'm a die-hard cowboy fan is
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pretty bad. ashley: you're a cowboy fan. >> i'm a die-hard cowboy fan. in new york. they almost won by the way. ashley: they did. >> so the stock exchange all these buys knew what was going to come down. they knew it was franken storm, the whole thing. nicole: right. >> they lived through 9/11. i was at "wall street journal" and covered 9/11 here. i remember the talk about contingency plans the fact that we don't really have one --. ashley: pretty remarkable, isn't it? >> pretty remarkable. i'm not saying, think about it this way, all the electronic places are not located in new york. arca is located in chicago. nicole: right. >> why couldn't you, you have to ask yourself why din the firms themselves, remember, with stock exchange firms told them they did not want to put people in harm's way, why didn't they have contingency plans? the markets should not be closed down because of a storm. nicole: it is not one small area. it is the entire eastern seaboard, so if they went
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electronic, they probably could have, charlie, they would have to bring people into different firms across the eastern seaboard not just on the in new york, on floor of new york stock exchange. >> five major banks. nicole: they would have to bring someone in somewhere. everything shut down. 7 million people without power. no one wanted to be responsible for few people. >> think about what you're saying. you're saying that a storm can stop, can conceivably stop the valuation of ibm? that to me is outrage just? we trade stocks. nicole: the other side of the coin, had there been any glitch, any glitch, right it, would have ruined investor confidence. it would have, fat finger, flash crash, all things would come up again as investor confidence is starting to come back. you would have had thin trading. and nobody to answer the phones if something went >> a, i don't think investor confidence is actually coming back right now. we see some marginal inflows into equitis. nicole: okay, coming back slowly.
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go with that. >> marginal. it was a blip one week. nicole: we're not talking about madoff anymore. >> but madoff really hurt investor confidence. nicole: right. >> i would say this, if you can close the markets all these other markets were ready to go. why wasn't this market ready to go? there is sort of a disconnect with your argument. your argument is, listen, if there was a trading glitch some wire didn't work, market could go down 5,000 points. we should point out every other market was ready to go but the new york stock exchange. and why, what is the problem between the new york stock exchange and its member firms about connectivity? and that is an issue. ashley: charlie, there will certainly be soul-searching going on no doubt. >> i hope so. he admitted it. ashley: thank you, so much, charlie, as always. how big of a hit will insurers and their stocks be taking from sandy? can the industry absorb the cost of this historic storm? the costs keep going up. we'll ask stifel nicolaus insurance analyst maya shields next.
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don't go away.
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millions of people and counting without power along the east coast and all of this in the wake of sandy. adam shapiro joins us with the latest numbers of the aftermath of the superstorm. >> when you talk about the south carolina mid point to maine and ohio is roughly eight million people. estimates were between seven million and ten million. write him in northeast it is considerable. almost five million alone. jersey central power and light,
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975,000 without electricity. atlantic's electric 181,000. con ed the supplier in manhattan as well as parts of new york, westchester, 793,000 of that electricity. long island power authority, 90% of long island without electricity according to governor cuomo. long island power authority reporting 942,000 customers without electricity. keep going down the list, we won't keep going down the list but it is up problem. almost eight million with promises electricity will be restored but it could take -- connecticut light and power 455,000, 1.4 million, and upstate new york, 136,000. they are saying in parts of manhattan it could take two to three days or weeks to restore power. that area below 34th street wiped out by electricity and in
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new jersey at least a week because you see the numbers. note electricity. it is a problem. ashley: can't do a lot without power these days. let's talk about the insurance affects of disaster. up to $10 billion in insured losses from superstores any more than hurricane irene's $4.3 billion industry loss. will stand the impact the insurers? joining us on the phone is an analyst with stifle nicholas. how well prepared are the insurance companies for a slew of claims that could total into the billions? >> the good news, i can say that about hurricanes, people on sight. a couple days notice. from an actual perspective, very well positioned, this has been up until the past few days a
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relatively low year for the industry. from a financial perspective, very well positioned with interruption. >> let's talk about particular companies or areas narrowed down to a certain extent. when i think of insurance i think of traveler. are there some that have more exposure to whether it is flawed or a certain kind of damage. what should we be watching over the next week or so? >> there are companies with different geographical exposures. you will see some companies focused on the mid-atlantic or the new england region with a fair amount of losses. this is coming in at controllable levels but they were evenly distributed. from the flooding perspective the key to remembers most of those losses will be insured by the federal government rather
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than the insurance industry. and very little impact on insurers'. ashley: 5 looking at information on insurance pricing. rates have been steadily going up over the last year in the wake of sandy they you expect premiums to go higher? >> from an insurance industry perspective, don't mean to sound insensitive, but the loss is not a big enough deal to change the what we are seeing is property reinsurance, stabilization because this has been a pretty good year. >> when you look at the trends and a meteorologist i am not, but i am hearing this is going to be some winter, still storms ahead. what do you think about that? >> you will certainly see a different perspective but one of the flaws of the insurance is does the insurance industry is bad things have to happen.
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ashley: weather patterns are changing. does this change the strategy of insurance companies moving forward? >> you are seeing a heightened flow level of caution, buying more insurance, in recognition that three bad things happen, it takes a sizable loss. more cautious in terms of aggregate exposure. ashley: thank you very much. we appreciate you joining us. >> sandy causing legal problems. how about the downed tree outside your house that fell on your car or fell on your roof? judge andrew napolitano has that coming up next. [ male announcer ] this is joe woods' first day of work.
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ashley: ashley webster with your fox business brief. new york stock exchange and nasdaq will reopen for regular trading after hurricanes and the forced the big board and market participants to close for two days. first time the night the has been closely to straight day is due to weather. all the way back in 1880. home prices rising in august according to the latest case schiller report. prices were up 0.9% from july on a non seasonally adjusted basis in line with expectations. the german drug maker bear is
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buying its manufacturer to $1.2 billion offering shareholders $34 billion a share. that is a 40% premium over friday's close. the move was an excellent strategic fit for the health-care business and that is the latest on the fox business network giving you the power to prosper.
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liz: the impact of skinny stretching from wind and rain damage to legal issues sure to come. your neighbor's tree falls on your house. who is responsible for this? who else can tell us the inside details on this than judicial analyst judge andrew napolitano. let's start with the most obvious. i have received tens of pictures, many of which include trees falling. give us the scoop on that.
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neil: -- judge napolitano: the owner of the property is responsible for any damage caused by the tree unless the owner is the government. the government doesn't have a degree of culpability as we private citizens do. >> it is on somebody's yard you can say is your call but it is on the sidewalk outside your home and fall -- judge napolitano: the sidewalk outside your home is a bazaar area of property. it is don't by the government but you are responsible for it. you are in front of city hall, you are in central park, yoo can sue the government. the government has written laws -- as a practical matter, in answer to the e-mails, if a tree falls on someone's car their insurance company will pay them for the cost and they will go after the homeowner foursquare up with the homeowner's insurance carrier because these carriers have a lot of credits
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because they are [talking over each other] [talking over each other] judge napolitano: quickly laid out as a lot of homeowner policies have exemptions in them for damage caused by rain, flood, you have to be careful what it is, a rare homeowners policy colors flood. you have to carry from a carrier which carries it from the federal government. that is the only source -- ashley: a very high deductibles. >> from a trader, a friend at the stock exchange, from fairfield beach, bay shore. you can see the home. and in the stock exchange, what is the best bet to go with that? that is atrocious. judge napolitano: if they do not
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have flood insurance from the federal government is a rare and in my experience on her of homeowner's policy in the northeast that covers flood insurance. they have to pay for that themselves. ashley: what if your neighbor, say you had not been up to speed on taking care of your property properly and you know this tree is going to pose a problem the minute wind gets above 40 miles an hour. can you go beyond the cost, can use soo for negligence? judge napolitano: that is what you would sue for. the fair market value of your damages weather damaged your car or your house. you probably wouldn't sue. your carrier would pay you and the carrier gets the right to sue. even neighbor or the neighbors's insurance. >> can you think of any crazy lawsuits that might come out of this? i know placed instead of in a water, a whole industry, when crazy lawsuit we will hear about, what might it be? judge napolitano: of interest to
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your viewers would be a business loss. very difficult to prove them. you have to prove how much the loss was, what you would have earned in that time period had you been in this. tough to prove. >> millions of dollars i lost. you are the greatest. ashley: sandy impacting air travel worldwide, people stranded. we have an update after the break. keep it right here on fox business.
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ashley: over 15,000 flights have been cancelled due to sandy with more delays and cancellations. william is in l. a? is a nightmare of there. >> ripple effect across the globe. except for 9/11, nothing has been as devastating more crippling as the transportation system than this storm. airports, passengers trains, subways, cargo ships, all of those basically being affected. six metro areas in lockdown with little going in or out. 16,000 flights cancelled since sunday but numbers rising. washington, baltimore, philly,
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boston having continuing airport problems and cancellations, la guardia, kennedy, because those are destination points, people can't get in or out. airlines canceled another 700 flights for tomorrow. the waiting list of long and cancellations, call centers are overwhelmed. exports say passengers are being booked on flights 0 weeks from today. >> the problem is there may not be any planes in the airport. airlines remove their planes in order to protect them from the storm and they have to be flown back and get crews in place as well. >> because these delays are weather-related you have to keep the hotel bill and i got off the phone with amtrak with 750,000 passengers delayed because of the northeast corridor. they are inspecting the lines and will let us know two hours from now about service on amtrak on the eastern seaboard.
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ashley: it will take awhile to figure this out. thank you so much. some new video coming in, president obama meeting with red cross volunteers. imagine the red cross is extremely busy and driven thousand people, twenty thousand meals have been served. take a live look right now. >> listen to your state and local officials, follow instructions. the more you follow instructions, to make sure they're dealing with two emergency situations. the better individual family they're prepared for the situation the easier it is to deal with it. next i want to talk about the extraordinary hardship we have seen for the last 48 hours. fox and prayers go to of --
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those who lost loved ones. there have been fatalities as a consequence of hurricane sandy. we counted up all the fatalities at this point and obviously this is something that is heartbreaking for the entire nation and we certainly feel profoundly for all the families whose lives have been upended and will be going through tough times over the next several days and perhaps several weeks and months. the most important message i have for that is america is with you. we are standing behind you and we are going to do everything we can to help you get back on your feet. earlier today i had a conversation with the governors and many of the mayors in the affected areas including governor christie, governor cuomo and mayor bloomberg. on want to praise them for the extraordinary work they have done. said lee, we are getting more
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experience with these kinds of big impact storms along the east coast and the preparation, were it not for the outstanding work day and their teams have already done and will continue to do in the affected regions we could have seen more deaths and more property damage. they have done extraordinary work working around-the-clock. coordination between state, local and federal governments has been outstanding. obviously we are now moving into the recovery phase in a lot of the most severely affected areas. new jersey, new york, in particular, have been pounded by the storm, connecticut has taken a big hit. because of some of the work that has been done ahead of time, we have been able to get over a thousand fema officials in place, repositioned, we have
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been able to get supplies, food, medicine, water, emergency generators to assure that hospitals and law-enforcement offices are able to stay up and running as they are responding. we are going to continue to push as hard as we can to make sure power is up throughout the region, this is mostly of local responsibility, private utilities lean forward but we are doing everything to provide additional resources so that we can expedite getting power up and running in these communities in places like newark, new jersey where you have 90% of people without power. we can't have a situation where that lasts for days on end. my instructions to the federal agency has been do not figure out why we cannot do something.
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i want you to cut through red tape, through bureaucracy, no excuse for in action. i want every agency to lean forward and make sure we are getting the resources where they are needed as quickly as possible. i want to repeat my message to the federal government. no bureaucracy, no red tape, get resources where they are needed as fast as possible, as hard as possible, and for the duration because the recovery process in a place like new jersey will take a significant amount of time. recovery process in lower manhattan, part of we are doing is also to see where some resources that can be brought to bear that maybe are traditionally not used in this kind of disaster situation, for example there may be military assets that allow us to help move equipment to insure that
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pumping and getting a flooding out of new york subway systems can proceed more quickly. maybe resources we can bring to bear to help the private utilities get their personnel and equipment in place more swiftly so we can get power up and running as soon as possible. my message to the governors and the mayors and threw them to the communities that have been hit so hard is we are going to do everything we can to get resources to you and make sure any unmet need is identified, we are responding as quickly as possible. i told the mayors and governors if they are getting no for an answer somewhere in the federal government they can call me personally at the white house. obviously, the state, local, federal response is important but what we do as a community, what we do as ne